Feature: New Mercedes parts warehouse supplies the country

Last March, Mercedes-Benz Canada officially opened its new Logistics Centre and Training Academy at a 204,000 square feet facility close to Pearson International Airport.

By logistics, we’re speaking of parts and the supply of said metallic, plastic, glass, leather, and you-name-it bits to the over 60 Mercedes-Benz dealerships and body shops nationwide.

Roman Fischer, Vice-President Global Service and Parts Operations from Daimler AG in Germany noted that one third of the company’s profits come from parts and service, and “like blood in our bodies, we have to pump parts through the veins of the business to keep it thriving.”

And pump they do. For 2010, worldwide Daimler AG parts sales tallied 7.3 billion euros, which translates to 33 million euros per day. This is servicing 5,300 dealers and 15 million customers in 200 countries.

While on a considerably reduced scale, this new Canadian facility houses about 90 per cent of the overall company’s parts supply, which include all parts, accessories, technical literature and “The Collection” items for the four brands: Mercedes-Benz, AMG, Maybach and Smart.

In total, over 45,000 parts are in stock, with about 2,200 going out daily.

Walking through the warehouse, you’re presented with endless rows of shelves, flats and bins, and while it may appear completely random, the layout was designed to allow optimum flow. Large overhead doors provide a separate gateway for certain parts to enter and exit the building.

Commonly requested parts like brake rotors are kept lower down for easy access, while more obscure hardware is stored more obscure locations.

The new Logistics Centre also has extended hours, which means later cutoff times for shipments to Eastern and Western Canada.

For the past eight years, Mercedes-Benz Canada had been using the Chrysler warehouse in Mississauga, but as one insider said, “The relationship wasn’t good when we went in, and it deteriorated over time.”

Another part of the company’s streamlining process is the relocation of M-B Canada’s Training Academy from downtown Toronto to this facility. Approximately 17,000 square feet are allocated to sales, service and technical training. Last year, the company trained over 2450 employees.